As used in this chapter:

1. (4) “Event integrity monitoring,” the monitoring of sports wagering to identify unusual or suspicious wagering activities from a match-fixing and sporting corruption standpoint and then reporting such activities to required parties;
2. (5) “Exchange wagering,” a form of wagering in which two or more persons place identically opposing wagers in a given market, allowing patrons to wager on both winning and nonwinning outcomes in the same event;
3. (6) “In-game wagering,” placing a sports bet after a sporting event has started;
4. (7) “Independent integrity monitoring provider,” an independent person who is registered with the commission and who receives reports of unusual wagering activity from the commission, a licensee, or a sports wagering services provider for the purpose of assisting in identifying suspicious wagering activity;
5. (8) “International sporting event,” an international team or individual sporting event governed by an international sports federation or sport’s governing body, including sporting events governed by the International Olympic Committee and the International Federation of Association Football;
6. (9) “Internet,” the international computer network of interoperable packet-switched data networks;
7. (10) “Involuntarily excluded person,” any individual who has been involuntarily excluded by the executive secretary or the commission and who is prohibited from establishing a wagering account or participating in gambling, gaming or wagering activities under the jurisdiction of the commission;
8. (11) “Layoff wager,” a wager placed by a sports wagering operation with another sports operation for the purpose of offsetting patron wagers;
9. (12) “Minor league sporting event,” a sporting event conducted by a sports league that has not been classified by the commission as a premier league in the sport;
10. (13) “Mobile application,” an application on a mobile phone or other devices through which an individual is able to place a sports bet;
11. (14) “Parlay bet,” a single sports bet that incorporates two or more individual bets for purposes of earning a higher payout if each bet wins, or a combination wager of multiple parlay bets for purposes of not necessarily winning all legs of the parlay to get a pay out;
12. (15) “Patron,” a person who places a sports bet;
13. (16) “Person,” an individual, partnership, corporation, association, limited liability company, or other legal entity;
14. (17) “Personal identifying information,” any sensitive information that could potentially be used to identify a particular patron;
15. (18) “Pool,” an offering where patrons may make selections of outcomes on a set number of sporting events on a card in order to enter for a chance to win all or a portion of the prize pool;
16. (19) “Prize pool,” the prizing available for an individual tournament, contest, or pool;
17. (20) “Professional sporting event,” a sporting event, other than a minor league sporting event, in which two or more persons participate and receive remuneration in excess of their out-of-pocket expenses for participating in the event;

18. (21) "Prohibited person," any person who:

    1. (A) Has been placed on the list of excluded persons pursuant to SDCL 42-7B-61;
    2. (B) Is under the age of twenty-one;
    3. (C) Is an employee of, or appointee to, the South Dakota Gaming Commission;
    4. (D) Is wagering while not in the permitted boundary pursuant to SDCL 42-7B-79;
    5. (E) Is wagering on behalf of another;
    6. (F) Is wagering in violation of SDCL 42-7B-83;
    7. (G) Is wagering in violation of state, local, or federal law;
    8. (H) Is employing a wagering account in a suspended mode; or
    9. (I) Is determined by the Commission to be prohibited from wagering through a contested case;
19. (22) “Rake,” the fee that is deducted by a licensee or sports wagering services provider from a wager made for exchange wagering, or entry fees paid by patrons who participate in a tournament, contest, or pool;
20. (23) “Rake adjustment,” an adjustment made by the licensee or sports wagering services provider to account for any shortfall in connection with a tournament, contest, or pool;
21. (24) “Sensitive information,” information such as transactional wagering data, authentication credentials, secure seeds and keys, and other data that must be handled in a secure manner;
22. (25) “Shared liquidity pool,” a tournament, contest, or pool conducted in South Dakota and at least one other jurisdiction;
23. (26) “Sporting event,” a contest or competition between individuals or teams, the results are determined at least in part by the skill or ability of an individual athlete or competitor or a team that is competing in the event;
24. (27) “Sporting event official,” any official as recognized by the respective sports governing body;
25. (28) “Sports bet,” an amount placed as a wager on the results of a sporting event, a contingency during a sporting event, or the performance or nonperformance of an athlete or competitor during a sporting event;
26. (29) “Sports governing body,” an organization that prescribes final rules and enforces codes of conduct for a sporting event and the athletes or competitors in the sporting event;
27. (30) “Sports wagering,” the acceptance of a wager on an authorized sporting event by any system of wagering authorized by the commission;
28. (31) “Sports wagering area,” the designated location in a gaming establishment approved by the commission, in which sports wagering may be conducted;
29. (32) “Sports wagering kiosk,” an automated device used by patrons to make wagers on sporting events, obtain wagering information, process sports wagering tickets and sports wagering vouchers, manage wagering accounts, and any other automated functions
30. (33) “Sports wagering operation,” a licensed operator in conjunction with a licensed sports wagering services provider who offers sports wagering to the public;
31. (34) “Sports wagering revenue,” the total of all wagers placed by patrons with a licensee, excluding free wagers and promotional play, minus all payments to patrons;
32. (35) “Sports wagering services provider,” a person who maintains or operates the software or hardware of a sports wagering system or facilitates wagering on a sporting event by providing a service defined in SDCL subdivision 42-7B-4(43);
33. (36) “Sports wagering system,” the hardware, software, firmware, communications technology, other equipment, as well as operator procedures implemented in order to allow patron participation in sports wagering, and, if supported, the corresponding equipment related to the display of the wager outcomes, and other similar information necessary to facilitate patron participation;
34. (37) “Sports wagering ticket,” a printed document or other electronic record that contains information pertaining to a sports bet;
35. (38) “Sports wagering voucher,” a printed record, or digital representation thereof, issued by a sports wagering system that may be used to fund a sports bet or may be redeemable for cash;
36. (39) “Suspicious wagering activity,” unusual wagering activity that is indicative of match fixing, the manipulation of an event, misuse of inside information, or other prohibited activity;
37. (40) “Unusual wagering activity,” abnormal wagering activity exhibited by patrons and deemed by the sports wagering operation as a potential indicator of suspicious activity;
38. (41) “Voluntarily-excluded person,” any individual whose name is included, at the individual’s request, on a self-exclusion list;

39. (42) “Winnings,” the total cash value of all property or sums, including currency or instruments of monetary value paid to a patron by a licensee as a direct result of a winning sports bet.

    Example: (3) "Event Category": Professional Hockey governed by the National Hockey League

Source: 48 SDR 14, effective August 22, 2021; 48 SDR 61, effective December 8, 2021; 49 SDR 9, effective August 9, 2022 .

General Authority: SDCL 42-7B-7 , 42-7B-11 (13).

Law Implemented: SDCL 42-7B-2.1 (1), 42-7B-43 .

Prior versions effective: 2021-12-08, 2021-08-22.